On July 24, 2007, Pizza Pizza Royalty Income Fund (TSX: PZA.UN) and Pizza Pizza Limited completed the acquisition of Flying Pizza 73 Inc. and its affiliated companies for a combined purchase price of C$70.25 million.
The transaction included the fund's (through Pizza Pizza Royalty LP) C$54.04 million acquisition of Pizza 73's trademarks and other intellectual property assets, and the C$16.21 million acquisition of Pizza 73's operating business.
Also in connection with the transaction, the fund issued a C$23.8 million offering of subscription receipts on July 5, 2007. Concurrent with the closing of the acquisition, Pizza Pizza Royalty LP entered into a credit facility co-led by BMO Bank of Montreal and Toronto-Dominion Bank. In addition, Michael Overs, indirectly, and the Pizza 73 vendors, acquired 766,392 units on a private placement basis for total proceeds to the fund of approximately C$7 million.
Pizza Pizza, based in Toronto, is Ontario's leading pizza retailer, with 532 restaurant locations, predominantly in Ontario and Quebec.
Pizza 73, based in Edmonton, is a leading quick-service restaurant pizza retailer.
Further information is found on
Pizza Pizza's website.